| Project Detail |
The project will be aligned with the following impact: competitiveness and sustainability of Mongolias agriculture sector improved.[1] The outcome of the project will be value addition on Mongolian agricultural resources increased by project participating enterprises (PPE).[2] The project is expected to enhance technology adoption of agro-enterprise, to increase primarily the agro-processing capacity and secondly agricultural production in Mongolia, and hence increase value addition to agricultural resources. The increased capacity will lead to employment generation, and indirectly benefit herders, farmers, and primary processors through the PPEs increased demand for raw materials. Project Name Agriculture and Rural Development Project Phase 2 Project Number 55218-001 Country / Economy Mongolia Project Status Approved Project Type / Modality of Assistance Loan The project will be aligned with the following impact: competitiveness and sustainability of Mongolias agriculture sector improved.[1] The outcome of the project will be value addition on Mongolian agricultural resources increased by project participating enterprises (PPE).[2] The project is expected to enhance technology adoption of agro-enterprise, to increase primarily the agro-processing capacity and secondly agricultural production in Mongolia, and hence increase value addition to agricultural resources. The increased capacity will lead to employment generation, and indirectly benefit herders, farmers, and primary processors through the PPEs increased demand for raw materials. Project Rationale and Linkage to Country/Regional Strategy Mongolia has witnessed a gradual decline in poverty levels since the early 1990s, when an estimated 40.0% of the total population was found to be poor. Poverty incidence fell slightly from 29.6% in 2016 to 28.4% in 2018. Moreover, according to the available statistics for 2018, the poverty rate was higher in rural areas (30.8%) than in urban areas (27.0%). Rural poverty declined to 30.8% in 2018 from 34.9% in 2016 and urban poverty rate was unchanged in 2018. The agriculture sector remains a key pillar of the economy. In 2020, agriculture contributed 11.9% of the countrys gross domestic product, with the sector growing at compounded annual growth rate of 12% from 2007 to 2020. The agriculture sector is providing employment to 25% of Mongolias economically active population. In contrast, the mining sector provides 5% of total employment in the country. As such, the agriculture sector translates far more directly into improved livelihood for vulnerable Mongolians than mining; and has the potential to reduce rural poverty, boost incomes, and diversify economic growth through food production and exports of high-quality meat and wool products. The Asian Development Bank (ADB) supports Mongolias economic diversification with several projects encouraging labor-intensive growth through utilizing and preserving Mongolias natural capital outside the mining sector. Impact Competitiveness and climate resilience of Mongolias agriculture sector improved |
